Morning Rundown | Gold and Silver Are Valuable
Housekeeping: in the last 2 days we posted 3 articles1 to help subscribers make sense of the events happening right now. We hope they helped. If you think so, feel free to create an annual membership. 2 If you are on the fence, subscription prices will go up in 1 week. Thank you. Once the trading day is over, we will update you all in one of those text style emails.
Everyone will have market direction opinions now. Information will flow like water. Management of that info is as important as the info itself. GOOD LUCK
Market Rundown
Good Morning: Markets have reacted violently and decidedly to the Russian sanction escalation. Behavior is almost the same as in previous liquidity events like Lehman in 2008 and Covid in March 2020. The Venn diagram of why things are doing what they are doing is an intersection of these things:
If an asset is backed by
LehmanRussian money, you are unable to sell itIf your asset is exposed to, or even perceived as exposed to
LehmanRussian counterparty risk, that asset will drop in valueIf an asset is physical in nature and consumed, it will [Edit: NOT] be sold cheaply to raise dollars,
especially if it is Gold and Silver which will be punished by US Banks for US dollars
The important exceptions are Gold and Silver…